Local banks boost profits

Published: Friday, August 1, 2014 at 11:10 a.m.

Last Modified: Friday, August 1, 2014 at 11:10 a.m.

Six of Southwest Florida’s community banks improved their earnings in the second quarter, but three others failed to match last year’s results.

Just as significantly, three local lenders that were in the red a year ago swung back to profitability in the April-to-June period, according to newly filed reports with the Federal Deposit Insurance Corp.

Bankers say they are lending more this year, which should translate to higher net income, but profits were tempered for some from a lack of gains on securities sales. Those sales pumped up many banks’ bottom lines over the past two years.

Sarasota’s Sabal Palm Bank posted a $123,000 net profit for the second quarter, compared with a loss of $85,000 last year.

The bank has made $7 million in new loans as of mid-year to local businesses and individuals, a 10 percent increase from the same period a year ago, said president and CEO Neil McCurry.

Even more importantly, the bank also has shaved its level of non-performing loans from 4.29 percent of assets to just 0.15 percent, and sold several properties for more than they were valued on their books.

“This resulted in a $170,000 gain from the sale of non-performing assets,” McCurry said.

Gateway Bank of Southwest Florida earned $290,000 in the quarter — off from $532,000 a year earlier — after selling some securities at a loss.

Still, loans have increased more than 20 percent over the past year. Gateway says it also has been fine-tuning its deposit mix, too, by reducing higher-paying CDs and growing non-interest bearing accounts. Such accounts are typically business accounts that reflect the bank’s effort to bolster business development.

Sarasota’s The Bank of Commerce lost $50,000 in the quarter. While that is an improvement from a loss of $136,000 in the same period a year ago, the bank also remains the only local financial institution that is unprofitable.

“While not what we want, this does demonstrate our focus on improving operating performance,” said president and CEO Charlie Murphy.

Bank of Commerce has other concerns, as well. It remains undercapitalized by regulatory standards and operates under an enforcement order that mandates higher capital levels.

Other lenders that improved their performances over last year were 1st Manatee Bank of Parrish; First America Bank of Bradenton; Charlotte State Bank & Trust of Port Charlotte; and Englewood Bank & Trust.

Profits at Calusa Bank of Punta Gorda, and Insignia Bank of Sarasota, were down compared with the same quarter last year.

<p>Six of Southwest Florida's community banks improved their earnings in the second quarter, but three others failed to match last year's results. </p><p>Just as significantly, three local lenders that were in the red a year ago swung back to profitability in the April-to-June period, according to newly filed reports with the Federal Deposit Insurance Corp.</p><p>Bankers say they are lending more this year, which should translate to higher net income, but profits were tempered for some from a lack of gains on securities sales. Those sales pumped up many banks' bottom lines over the past two years.</p><p>Sarasota's Sabal Palm Bank posted a $123,000 net profit for the second quarter, compared with a loss of $85,000 last year.</p><p>The bank has made $7 million in new loans as of mid-year to local businesses and individuals, a 10 percent increase from the same period a year ago, said president and CEO Neil McCurry.</p><p>Even more importantly, the bank also has shaved its level of non-performing loans from 4.29 percent of assets to just 0.15 percent, and sold several properties for more than they were valued on their books.</p><p>“This resulted in a $170,000 gain from the sale of non-performing assets,” McCurry said.</p><p>Gateway Bank of Southwest Florida earned $290,000 in the quarter — off from $532,000 a year earlier — after selling some securities at a loss.</p><p>Still, loans have increased more than 20 percent over the past year. Gateway says it also has been fine-tuning its deposit mix, too, by reducing higher-paying CDs and growing non-interest bearing accounts. Such accounts are typically business accounts that reflect the bank's effort to bolster business development.</p><p>Sarasota's The Bank of Commerce lost $50,000 in the quarter. While that is an improvement from a loss of $136,000 in the same period a year ago, the bank also remains the only local financial institution that is unprofitable.</p><p>“While not what we want, this does demonstrate our focus on improving operating performance,” said president and CEO Charlie Murphy.</p><p>Bank of Commerce has other concerns, as well. It remains undercapitalized by regulatory standards and operates under an enforcement order that mandates higher capital levels.</p><p>Other lenders that improved their performances over last year were 1st Manatee Bank of Parrish; First America Bank of Bradenton; Charlotte State Bank & Trust of Port Charlotte; and Englewood Bank & Trust.</p><p>Profits at Calusa Bank of Punta Gorda, and Insignia Bank of Sarasota, were down compared with the same quarter last year.</p>